IBM (IBM)
NYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-09-04
$234.89+0.08%
Close 2026-09-04 · 1-day change
NYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-09-04
QuarterlyIQ Insights · IBM
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-09-04.
The screen ranks IBM against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated strong grew net income 65% of the time over the next year (vs 52% for the rest of the cohort, n=6360).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Drive revenue growth above 5% constant currency annually through expanding software, infrastructure, and consulting segments with AI and hybrid cloud focus.
Stated as a priority in 6 of last 6 quarters. Revenue grew from $14.5 billion in 2025-Q1 to $17.2 billion in 2026-Q2. Management consistently raised and maintained guidance for more than 5% constant currency revenue growth for 2025 and 2026, showing delivery and momentum in growth acceleration.
“We now expect constant currency revenue growth in the range of four-to-five percent.”
“We continue to expect full-year constant currency revenue growth of more than 5 percent.”
“We are raising our expectations for revenue growth to more than 5%.”
“We are raising expectations for revenue growth to more than 5%.”
“We continue to expect accelerating revenue growth to 5% plus for the full year.”
“We are maintaining our full year guidance for accelerating revenue growth of 5% plus.”
Continue to grow free cash flow by approximately $1 billion annually through productivity, margin expansion, and disciplined capital allocation.
Stated as a priority in 6 of last 6 quarters. Free cash flow was $4.8 billion in first half 2026, flat year over year, with full-year guidance raised to about $14 billion for 2025. Management has consistently reiterated the $1 billion year-over-year increase target, showing delivery with some flatness in recent half-year but overall on track.
“We continue to expect free cash flow to increase by about $1 billion year-over-year for the full year.”
Commit to investing more than $10 billion in quantum computing R&D, capex, partnerships, manufacturing, and M&A over the next five years.
Stated as a priority in 3 of last 6 quarters. IBM announced a $10 billion investment plan in quantum computing over five years, aiming for a large-scale fault-tolerant quantum computer by 2029. Progress includes new quantum data centers and partnerships, indicating ongoing delivery on this strategic investment.
“IBM will invest more than $10 billion in quantum over the next five years.”
Achieve $4.5 billion in annual run rate productivity savings by end of 2025 through AI-driven automation and operational efficiency improvements.
Stated as a priority in 4 of last 6 quarters. Management set a goal of $4.5 billion annual run rate productivity savings by end of 2025, up from $3.5 billion at end of 2024. Recent quarters highlight AI-driven automation and supply chain optimization as key drivers, showing progress and delivery on this cost discipline priority.
Grow software portfolio focusing on AI and hybrid cloud with leadership in generative AI products, AI assistants, and hybrid cloud platforms.
Stated as a priority in 6 of last 6 quarters. Software revenue grew from $6.3 billion in 2024-Q3 to $7.8 billion in 2026-Q2, driven by AI and hybrid cloud platforms including Red Hat and watsonx. The generative AI book of business expanded from over $6 billion inception-to-date in 2025-Q1 to over $9.5 billion in 2026-Q2, showing strong delivery and momentum in AI leadership.
Over the trailing year it converted 2.54x of net income into operating cash flow. Historically, Information Technology names rated neutral grew net income 57% of the time over the next year (vs 52% for the rest of the cohort, n=4162).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
8 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Information Technology names rated neutral grew net income 60% of the time over the next year (vs 57% for the rest of the cohort, n=3673).
Not investment advice. As of 2026-09-04.
“We continue to expect full-year free cash flow to increase by about $1 billion year-over-year.”
“We are raising our expectations for free cash flow to about $14 billion for the year.”
“We are raising our expectations for free cash flow to above $13.5 billion for the year.”
“We continue to expect full-year free cash flow to increase by about $1 billion year-over-year.”
“We are maintaining our full year guidance for about $13.5 billion of free cash flow.”
“We continue to deliver key milestones in our quantum roadmap.”
“We are on a path to demonstrate the first error-corrected quantum computer by 2028.”
“We are accelerating productivity by scaling software development leveraging AI and optimizing supply chain.”
“We expect $4.5 billion of annual run rate savings exiting this year.”
“We exited 2024 at $3.5 billion of annual run rate savings and expect $4.5 billion by end of 2025.”
“We exited 2024 at $3.5 billion of annual run rate savings achieved.”
“High-Growth Portfolio: Red Hat, watsonx portfolio, HashiCorp, and Confluent continue to deliver strong performance.”
“Software revenue up 11%, led by Red Hat, Automation, Data and Transaction Processing.”
“Our generative AI book of business is now over $5 billion inception-to-date.”
“Our GenAI book of business accelerated to over $1.5 billion in the quarter.”
“Our generative AI book of business is now over $1 billion inception-to-date.”
“Our generative AI book of business is now over $6 billion inception-to-date.”